In the UK, there are four main types of charity structures, each with its registration requirements:

• Charity Company — Registered only with Companies House, as a non-profit private company limited by guarantee.
• Incorporated Charity — A charity company registered with the Commission, ensuring company and charity law compliance.
• Charitable Trust — Also known as an unincorporated charity, it is established by personally liable trustees who operate under a trust deed as the main governing document. Once the trust attains an annual income of £5,000, the trustees must register it with the Commission.
• Unincorporated association — Registered only with the Charity Commission if its annual revenue exceeds £5,000 and is not required to register with Companies House.

In the UK, different commissions oversee various regions, such as the Charity Commission in England and Wales, OSCR for Scotland, and CCNI for Northern Ireland. Additionally, individuals can establish a Charitable Incorporated Organisation (CIO), which requires registration solely with the Commission.

Our service does not include registering the charity with the Charity Commission. We offer the CLG company structure and provide model articles of association that enable the company to obtain charity status. A Companies House registered charity can enter into contracts in its name and have legal obligations in its own right. The company can later be incorporated with the Commission if its annual revenue exceeds £5,000.

The commission recognises 13 charitable purposes in the Charities Act 2011 that outline broad areas of potential non profit activities for public benefit as follows —

1. Prevention or relief of poverty
2. Advancement of education
3. Advancement of religion
4. Advancement of health or the saving of lives
5. Advancement of citizenship or community development
6. Advancement of the arts, culture, heritage or science
7. Advancement of amateur sport
8. Advancement of human rights, conflict resolution or reconciliation or the promotion of religious or racial harmony or equality and diversity
9. Advancement of environmental protection or improvement
10. Relief of those in need by reason of youth, age, ill-health, disability, financial hardship or other disadvantage
11. Advancement of animal welfare
12. Promotion of the efficiency of the armed forces of the Crown, or of the efficiency of the police, fire and rescue services or ambulance services
13. Any other charitable purposes

Model articles of association are a standard set of rules and regulations that guide how trustees who want to set up a not-for-profit organisation on gov.uk will run it. These articles include provisions for charity companies that ensure the organisation meets the requirements for public benefit status. Companies can adopt the model articles, edit them or upload their bespoke articles during registration.

Forming a charity company in the UK offers numerous benefits, including tax exemptions and reliefs, increased credibility and trust, eligibility for grants and funding, and legal protection for trustees and members. These advantages can significantly enhance your non profit activities and operations.

Setting up your charity company in the UK can take up to 6 hours with Your Company Formations, depending on the Companies House backlog and how quickly you provide the necessary ID check documents to our compliance team. Engaging promptly with our team ensures a smoother and faster formation process.

To set up and run a charity company in the UK, you will need to provide the following documents and information to Companies House:

• Charity Name: Choose a unique name for your charity. You can use our free company name check tool to verify the availability of your preferred name.
• Governing Documents: This includes your memorandum and articles of association, which outline the rules and regulations for running your charity.
• Charity’s Objects: Clearly define your organisation's charitable purposes and objectives, aligned with the Charity Commission’s requirements as specified in the Charities Act.
• Trustee Details: Provide the details of your trustees, including their full names, addresses, dates of birth, and other relevant information.
• Proof of Identity and Address: Submit ID check documents for all trustees and directors, including proof of identity (passport or driving license) and proof of address (utility bill or bank statement).
• Registered Office Address: Provide a UK address that will serve as the official address for your charity and be used for official correspondence.
• Register with HMRC: Once you are set up, register your charity’s details with HM Revenue and Customs (HMRC) to get tax back on donations like Gift Aid.

Ensuring all these documents and information are complete and accurate can facilitate a smooth formation process for your charity company.

No, there is no legal route for converting a company limited by shares into a company limited by guarantee (CLG). You will need to wind up the existing company and register a new CLG to incorporate it as a charity once it meets the necessary criteria. However, an existing CLG can be registered with the Charity Commission and obtain charity status if its annual income is £5,000 or more and it has been pursuing community oriented objectives.

Trustees of a charity company are responsible for ensuring the organisation operates in accordance with its charitable objectives, complies with legal and regulatory requirements, and manages its resources responsibly.

Charity companies must file annual returns and accounts with Companies House and the Charity Commission. These documents provide transparency and accountability regarding the charity's activities and financial status.

To get started, contact us to discuss your needs and objectives. Our team is here to guide you through the process, help you set up the CLG structure, and prepare the necessary documents to achieve charity status.

Feel free to reach out if you have any questions or need further assistance forming your charity company.